Deal completion in 2003 ’will increase Akzo Nobel’s production capacity for pharmaceutical ingredients’
Diosynth, the manufacturing business of Akzo Nobel has reached agreement to acquire GlaxoSmithKline’s (GSK) manufacturing facility in Montrose, Scotland. A supply agreement to provide with GSK with active pharmaceutical ingredients (APIs) will be serviced by the site.
Jobs of about 500 of the 700 workforce are secured with around 200 lay-offs expected by ’voluntary redundancies’.
The deal is expected to be signed and completed early in 2003.
Akzo Nobel says “the Montrose facility is in line with Akzo Nobel’s commitment to grow its Pharma businesses and maintain growth momentum.”
"The facility will provide a secure basis for Diosynth to meet demand for pharmaceutical ingredients arising from Akzo Nobel’s human and veterinary pharmaceutical businesses – in addition to custom from third parties."
Purchase of the Montrose facility provides extra capacity while avoiding large capital expenditures in existing plants.
According to Johan Evers, General Manager of Diosynth: The Montrose facility "will significantly increase their production capacity for active pharmaceutical ingredients (APIs) by complex organic chemical synthesis."
Montrose employs a highly skilled workforce with know-how and long experience in working with APIs, offering a good fit with Diosynth’s activities.
Montrose has an impressive list of regulatory approvals that parallel those held by Diosynth’s site at Oss in The Netherlands.
A supply contract with GSK would come with the site, and the workforce’s good health, safety and environment record make it an attractive prospect for Diosynth to incorporate the facility into its worldwide network of sites.
The Montrose facility produces pharmaceutical ingredients for a variety of GSK’s products, including treatments for respiratory problems, skin conditions, highly infectious diseases, cardiovascular complaints and cancer.
Keywords : Diosynth GSK Acquisition Montrose Scotland Third party manufacture contract Active pharmaceutical ingredients (APIs)
